Finance Leasing Manual - FLM31.65

Fourth condition: comparison with normal rent

The accountancy rental earnings (see FLM31.60 onwards), once identified in this way, are then compared with the 'normal rent'. The meaning of normal rent is discussed in FLM31.66. Both accountancy rental earnings and normal rent are to be computed before any reduction in respect of bad debt relief. See FLM34.01 for a detailed discussion of bad debt relief.